Top Trade Ideas for the Week of May 16, 2011: The First 5

• Posted by Greg Harmon
• on May 15th, 2011

After reviewing over 800 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which looks like more downside for Gold and Crude Oil. The upside path looks to continue for the US Dollar Index and US Treasuries. The Shanghai Composite looks to reverse higher with the Emerging Markets continuing lower. Volatility looks to remain in check. The Equity Index ETF’s will look to the QQQ for leadership to try to pull them higher, with the SPY and IWM looking weaker without any help. Use this information to understand the major trend and how it may be influenced as you prepare for the coming week ahead. Trade’m well.

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

Here are the first 5 ideas for the week, to get you started:

Altera, Ticker:$ALTR

Altera is in a bull flag after a move higher. If it can break the flag higher over 49 it has a target on a Measured Move (MM) to 56. The Relative Strength Index (RSI) is moving sideways in bull territory but the Moving Average Convergence Divergence (MACD) indicator has crossed negative. On a break of the flag use the break out or 47 as a stop.

Boeing, Ticker:$BA

Boeing has been in a bull flag after breaking the rising channel. If it can get over 80.25 then it has a target of 85 on a MM. Watch for the MACD crossing lower and the RSI falling to reverse as a clue to enter.

The Bank of New York Mellon, Ticker:$BK

The Bank of New York Mellon is breaking previous support at 28.15 and testing the 200 day Simple Moving Average (SMA) at 28.04. Below that support comes at 27.70 and then 27 and 26.50. The RSI is falling and the MACD flat to crossing down suggesting more downside. Short interest is minor in this name. Use a stop near 28.15.

Canadian National Railways, Ticker:$CNI

Canadian National Railways is heading lower to support at 74.52 with 73 and then 71.70 below that. The falling RSI and MACD crossing negative suggest more downside. Short interest is negligible in this name as well. Use 76.10 as a stop.

Crocs, Ticker:$CROX

Crocs is in a bull flag after moving higher from 19.54. If it can get over 22.65 then it has a target of 25.50 on a MM. The increasing MACD is helping higher and the RSI is flat but firmly bullish. Use a stop near 22.

Up Next: The Rest

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